Are you buying clients?

If not, then what are you waiting for?

That’s the purpose of your “small business advertising” – to buy clients…

Then they pay out more than the cost to get them…

So it counts as an investment…

So, since we agree that’s true… How much do your clients cost?

And what have you gained on your investment, or ROI (Return on Investment)?

If you don’t know these answers, you’re in great company…

Many small business owners don’t know the answers to these questions using actual hard data…

And hey, they’re still in business…

Sounds like it’s not that important then right?

It depends on where you want your business to go…

The majority of small business owners earn less money than mid-level management in large businesses…

And many end up working a lot longer hours…

A few have risen into the 6-figure net income arena…

Even less have achieved true wealth…

Personally, I view the latter group as financial and business successes…

Even if you love what you do – why spend 80 hours working and only making 40 hours worth of pay?

Don’t most of us launch our businesses with the hopes of enriching our lives?

Well then maybe we should review how we’re spending our money on advertising…

Learn your costs for each customer, because if you know that they could double your profits… how much more would you pay out?

Well, that’s the name of the game in small biz advertising…

Give them a cookie now, get two back later…

Rinse and repeat… and repeat… and repeat…

Until it stops working… If an ad works, stay with it until it doesn’t anymore… All the while tracking and measuring the profit it brings in…

But I’m getting side-tracked now…

Back to the earlier questions…

Like your ROI on client acquisition costs.

There’s a couple things you need to track to measure your ROI…

First is your break even point…

Because if you don’t know this, you’ll have cash flow problems…

But if you learn where you break even, and within 7 days get that ROI of 1, then you can start to plan ahead…

Unless it takes you 7 weeks to reach to break even, then you need to plan accordingly…

You get it…

So, once you know your client-getting cost and your ROI at various points in time, let’s talk about how to improve your ROI…

There are only two way to improve the ROI on your marketing…

Lowering costs or increasing income… those are the two step towards growing your businesses profits…

To lower costs you could acquire customers cheaper by finding better deals on your advertising, or trying a different and cheaper way to advertise…

That’s one step towards improving your ROI… but one you should take lightly…

Because, eventually you’ll reach zero if you keep going down on costs…

But if you’re gaining 1,000% on every dollar spent, then your ROI must be great right?

Well what matters to us as small business owners, is what do I get to keep at the end of the day?

I say all that to tell you – don’t focus on ROI and forget about net profit…

By pursuing the second method for improving ROI, you’ll accomplish both objectives – a better ROI and more net profit…

Increasing income from every new customer…

There’s two ways:

# Increase the transaction size for each client
# Increase the frequency of client purchases

Raising prices, new or upgraded products, or cross-sells of loosely associated items with your original product purchase. Any of these can increase transaction size…

To increase the frequency of buys, you can throw in subscriptions or memberships with your business, make new products to pitch to your clients, or use other company’s products through a joint venture…

Implement just one of these ideas in the next month and you’ll immediately see an increase in profits…

Remember, success and failure for small business depends solely on the implementation of a good plan…

Many failing small businesses are run by business owners with brilliant ideas, who fail to implement them…

Don’t be that business owner…

Take what you are learning here and implement it – then share your success story with me so I can publish it on the blog…

As always, feel free to leave any comments or questions…

Here’s to always improving small business advertising!!!